Termed and Evergreen Subscriptions

A successful subscription business model depends not only on new customer acquisition but also on net retention and customer lifetime value growth. Research shows that 70% of subscription revenue on average comes from existing customers. Because of the criticality of retention, customer churn rate is a key metric.

Zuora’s Subscribed Institute analyzed Subscription Economy Benchmark data to develop guidance on how auto-renewing, evergreen, and standard termed subscriptions affect churn.

Report highlights include:

• Explanation of the 2 dominant types of subscriptions: Termed and Evergreen
• Churn rate analysis for evergreen and auto-renewing subscriptions compared to standard termed subscriptions
• The impact of auto-renewing termed subscriptions on LTV